Mumbai: GetVantage, India’s leading alternative-financing fintech platform, today announced its SaaS Accelerator Fund II to help B2B SaaS businesses scale without equity dilution. This INR 250 crore Fund II is an extension to GetVantage’s SaaS Accelerator Fund I launched in 2022 (approximately INR 65 crore) and is designed to supercharge the growing momentum of SaaS founders and businesses in India.
For this, GetVantage has its own licensed NBFC GetGrowth Capital, along with partnerships with Varanium’s Debt Fund (SEBI approved) and other leading NBFCs and AIF funds.
Since GetVantage sharpened its focus on the B2B SaaS sector 18 months ago, the company has fully deployed the original corpus of INR 65 crore. It has earmarked nearly 4x the amount for this follow-on fund, given the incredible inbound interest from hundreds of SaaS founders over the past 12-18 months.
The SaaS Accelerator Fund II by GetVantage will deploy INR 250 crore over the next 12-18 months and help SaaS founders with fast, fair, non-dilutive capital to scale their businesses. GetVantage first launched its pioneering SaaS Runway Capital product in 2022 and has since been actively involved as a preferred funding partner to SaaS founders in India, even during the Silicon Valley Bank crisis early last year, when SaaS was one of the primary sectors to get impacted.
SaaS is one of the few sectors that continues to see strong 2.5X YoY growth despite formidable economic headwinds. Also, the space witnessed an impressive 96% of unicorns and unicorns hiring extensively, indicating significant growth in the workforce and the businesses.
Speaking of the fund, Karun Arya, Chief Growth Officer, GetVantage, said, “We look forward to supporting more high-potential home-grown SaaS companies with recurring-revenue financing designed to help them scale without diluting equity, ownership, or control. GetVantage’s SaaS Runway Capital product, launched in 2022 and proven over 18 months, helps SaaS founders supercharge their ARR before their next equity raise. With the Indian SaaS market expected to bring in $20-25 bn in the next two years, GetVantage is well positioned to become an invaluable long-term growth partner for like-minded founders who are looking to innovate, scale, and grow sustainably.”
In the last couple of years, SaaS businesses have learned to operate efficiently, increasing their scope of profitability and higher gross margins, anywhere around 67%. Alternative Financing (Alt-Fi) platforms aid in boosting these parameters for SaaS businesses. Leading global alternative-financing platform Capchase, in its latest SaaS benchmark report, suggests how and why SaaS businesses should explore Alt-Fi options that are cost-effective, non-dilutive, and give access to a line of credit to increase the runway.
Venkatesh Peddi, Managing Director & Partner, Chiratae Ventures, mentions, “The resilience and adaptability of the Indian SaaS industry has positioned it for remarkable growth over the next few years, with a potential surpassing $25 billion by 2026. The recurring nature of revenues and category of digital expenditures present an ideal opportunity for GetVantage to expand its offerings and support for SaaS founders with their SaaS Accelerator Fund II.”
Shiyam Sundar, Founder, Tripledart, shares, “Having worked with over 100+ SaaS companies, understanding their customer acquisition strategies and growth patterns, I am excited about the launch of GetVantage’s non-dilutive $30 million SaaS Fund. India boasts nearly 3,500 SaaS companies, with only 80 surpassing $10 million in ARR, growing at an impressive 60% YOY revenue run rate for the past two years. This fund presents a remarkable opportunity for founders seeking a capital infusion without relinquishing equity. In today’s evolving market landscape, where fundraising has become increasingly challenging, alternative financial solutions like this are becoming a beacon of hope for startups. GetVantage’s initiative is set to make a significant impact, and I look forward to witnessing the transformative growth it ignites within the SaaS ecosystem.”
The Indian SaaS market is projected to reach $50 billion of ARR (Annual Recurring Revenue) by 2030, growing multiple-fold. This inflection point is a crucial stage for SaaS businesses in the country as the brands are not only receiving more interest, but even the corporate mindset is widening, opening doors for many SaaS platforms to build and innovate.
Mumbai-based GetVantage, the pioneer of cash flow-based financing in India and one of the most active SaaS investors in the country, is the first and only alternative financing platform to secure an NBFC license earlier this year and has facilitated equity-free funding for over 750+ companies across 20+ sectors. The company has amassed arguably one of the most impressive SaaS portfolios. It works with numerous partners, investors, and enablers to create the most fertile environment for SaaS entrepreneurs to thrive as they build from India, for India, and the world. Just a few days ago, it was announced that GetVantage facilitated funding for the SaaS recruiting platform Recruiter.
